Lecture Notes 3-11-10 - "...final....

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Lecture Notes Economics T-Th A. Ordonez Chapter 15 809-195-3K1C 3/11/10 Chapter 15: Measuring a nation’s income: When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning For the economy as a whole, income must equal expenditure because . .. Every transaction has a buyer and a seller Every dollar of spending by some buyer is a dollar of income for some seller Gross Domestic Product (GDP) is a measure of the income and expenditure of an economy GDP is the total market value of all final goods and services produced within a country in a given period of time GDP is the total market value - output valued at market prices "... of all. .." o includes all items produced in the economy and legally sold in market
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Unformatted text preview: "...final. .." o it records only the value of final goods, not intermediate goods. ".... goods and services. .." o it includes both tangible goods and intangible services "...Produced. .." o it includes goods and services currently produced, not transactions involving goods produced in the past "...within a country. .." Lecture Notes Economics T-Th A. Ordonez Chapter 15 809-195-3K1C 3/11/10 o it measures the value of production within the geographical confines of a country "...in a given period of time. .." it measures the value of production that takes place within a specific interval of time, usually a year or a quarter(3 months)...
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This note was uploaded on 05/10/2010 for the course ECONOMICS 809-195-3K taught by Professor A.ordonez during the Spring '10 term at Gateway Tech.

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Lecture Notes 3-11-10 - "...final....

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